Recon Roofing & Construction Agrees to Consent Order Regarding Unlicensed Public Adjusting

The Iowa Insurance Division entered into a Consent Order with Recon Roofing & Construction on October 24 following a cease-and-desist order issued by the Iowa Insurance Division related to issues in unlicensed public adjusting this past June.

Following the issuance of the cease-and-desist order, Recon Roofing & Construction undertook efforts to remediate their practices and come into compliance with Iowa law. Those efforts included conducting an employee training on unlicensed public adjusting and editing the company's website.

"The Iowa Insurance Division has been appreciative of the cooperation by Recon Roofing & Construction in this matter and is pleased that the company's leadership has taken the appropriate steps in getting into compliance with existing state law," said Chance McElhaney, Chief Operations Officer of the Iowa Department of Insurance and Financial Services. "Iowa's laws regarding public adjusters are in place to help protect Iowans. Contractors by law may not act as public adjusters on the same property claim and contractors need to fully understand what they can and cannot do."

A public adjuster is any person who, for compensation, acts on behalf of an insured, during the investigation, negotiation, or settlement of a first-party claim for loss or damage to real or personal property of the insured. Iowa law requires public adjusters to be licensed. It is important for property owners to know that if a disagreement with their insurance company arises over the cost and scope of repairs, the homeowner or a licensed public adjuster, not the contractor doing the work, needs to communicate and negotiate with their insurance company. A contractor may provide information, such as damage reports and repair estimates, to the homeowner and, if asked, to the insurance company, but may not represent or negotiate on behalf of the homeowner.

Recon Roofing & Construction was one of a handful of contractors that were issued Cease and Desist Orders by the Iowa Insurance Division in June that highlighted numerous instances where the company had been soliciting business by presenting itself to potential customers as contracting for repair and providing public adjuster services in the State of Iowa.

Iowans with questions or concerns regarding their insurance policy or claim can file a complaint with the Iowa Insurance Division.